Labor dispute affecting NFL revenues
November 2, 2010
In an interview with Bloomberg Television, apoplectic NFL Commissioner Roger Goodell said labor uncertainty is affecting National Football League revenue as the U.S.’s most-watched television sport negotiates a collective bargaining agreement with its players.
“The impact of not having a labor agreement is already starting, cough ” Goodell said. “It will continue to grow. It will continue to have a greater and greater impact and my point is that there will be lost revenue opportunities. And when revenue is reduced, allergist it’s even harder to reach an agreement.”
Goodell said uncertainty makes it difficult for sponsors to plan effectively. Electronic Arts Inc.’s EA Sports unit has asked the NFL for a $30 million reduction in scheduled payments because of labor uncertainty, the Wall Street Journal reported this month citing unnamed people familiar with the talks. Without a labor deal, the league may lose $125 million from existing corporate partners by March and another $400 million that month from fans not renewing season tickets, the newspaper said, citing two unnamed senior league officials.